Mortgage Application Documents
What kind of supporting documents does the bank require for a mortgage application? The list of the supporting documents for a mortgage application varies a little bit depending upon what kind of borrower you are. Are you a salaried person? If so, then the list of documents required is pretty standard. But if you are self-employed, then this list can get tricky depending upon how good your bookkeeping and filing of your taxes have been.
Preparing to apply for a Loan or Mortgage
Before you apply for a loan or a mortgage, get all the supporting documents ready. Below is the list of most of the supporting documents a lender will require. Having rounded up your documents before you start to fill your mortgage application will make it so easy for you and the lender.
Loan Application – Completely filled in, signed and dated
Consent Form – signed
Pay Stubs – one to two months depending on the lender. Pay stubs must indicate the rate of pay, pay period, gross and net income, taxes and benefit deductions.
T4 – Last two years.
T1 Generals or Tax Returns – Last two years.
Self-Employed Returns – Last two to three years of tax returns and business financials; year-to-date business financials. Last two years NOA’s. If you cannot provide Tax Returns, then you have to go to a Bank that offers Alternative lending. They can do the mortgage with your last 12 months business and personal bank statements. Copy of business license. GST number, certificate of incorporation, etc. If you cannot even provide your bank statements then your only option is a Private Mortgage provided you have plenty of lendable equity.
For Rental Properties – please provide rental agreements and last two years of tax returns. The banks would like to see how much rental income you have reported.
Employment Letter – Current Letter of Employment, must be within 30 days, from the employer outlining (a) employee start date, (b) position status, (c) gross wage, and (d) HR contact for lender phone-call verification (letter must be signed by the author).
NOA – (Notice of Assessment) from CRA for last two years.
Bank Statements – three months, if the purchase.
First Mortgage Statement – if applying for refinancing or a second mortgage. A recent Mortgage Statement from within the last 30 days, indicating (a) client name (b) the account information (c) property address and (d) current balance.
Property Tax Notice – recent property tax notice to show that the property taxes are current
Homeowner’s Insurance – your homeowner insurance agent’s name and number
Strata Information – if a condo or a townhouse, provide a copy of Form B, condominium declaration, depreciation report, by-laws, and most recent budget. Proof that the Strata maintenance fees are current.
Divorce Decree, if applicable.
Bankruptcy papers – (all schedules) and Discharge if applicable.
Name and address of your landlord – if asked for
Purchase Money Mortgage – If you are applying for a purchase money mortgage, your lender will also need the following items:
- Copy of signed sales contract (offer to purchase)
- Verification of the deposit you placed on the property
- Names, email addresses and telephone numbers of all realtors, builders, insurance agents and lawyers involved
- Copy of the MLS listing
Gift From Relative or Employer –
- Letter of confirmation verifying the gift is unencumbered and requires no re-payment
- In addition to the Gift Letter, the bank may want to verify that such funds are actually in the bank account of the person gifting the funds or verification that the funds are on deposit in the applicant’s bank account prior to closing must be provided
- Source of funds -domestic or international
The above list of supporting documents for your mortgage application will by no means meet the requirements of all the banks and the lenders. So, please do check with your bank and submit the documents accord to their requirements.